Personal Income Tax in Indonesia

Personal income tax in Indonesia is taxed upon earnings such as salary, dividend, pension money, or interests. The Indonesian government taxes a specific percentage of these fees. Individuals, whether residents or non-residents, must pay personal income tax according to calculations. Typically, employers deduct personal income taxes, often managed by a dedicated HR department in charge of the payroll. However, it is also important for the taxpayers to know about their responsibilities.

Residents of Personal Income Tax in Indonesia

In Indonesia, the government divides personal income tax rates according to the amount of taxable income you earn. Here are the details:

If you earn up to IDR 50 million, the government charges you 5%. If your income falls within the range of IDR 50 million to IDR 250 million, the government charges you 15%. For income between IDR 250 million to IDR 500 million, the government imposes a 25% tax rate. If your taxable income exceeds IDR 500 million, the government levies a 30% tax rate.

Personal Income Tax Exemption

in Indonesia Based on the regulations, everyone who receives revenue in Indonesia is obliged to pay personal tax. However, there are several people who are exempt from paying personal income tax. Diplomatic staff and consulate staff from foreign countries with significant contributions to their Indonesian counterparts. Military personnel and civilian staff from foreign armed forces. Representatives from international organizations

Personal Income Tax Rates

In Indonesia, the government divides personal income tax rates according to the amount of taxable income you earn. Here are the details:

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If you earn up to IDR 50 million, the government charges you 5%.
If your income falls within the range of IDR 50 million to IDR 250 million, the government charges you 15%.
For income between IDR 250 million to IDR 500 million, the government imposes a 25% tax rate.
If your taxable income exceeds IDR 500 million, the government levies a 30% tax rate.

Tax Return Documents in Indonesia

ITaxpayers in Indonesia need to lodge their personal income taxes for the annual tax return period from January 1st to December 31st by March 31st of the following year.

How can Double M help?

You are obliged to pay personal income taxes if you make money in Indonesia. With Double M’s help, you will be able to calculate and pay your personal income taxes while complying with the regulations.